Gaurs Group redcues its debt by 35% in last three years

Gaurs Group has reduced its debt by 35% to Rs 1,550 crore in the last three years through improved cash flow from residential projects in Delhi National Capital Region (NCR).

Investment Information and Credit Rating Agency of India (ICRA) has awarded BBB+ with a stable outlook rating to Gaura Group. The company told the media that the up-gradation in the rating has reflected in debt reduction.

Chairman and Managing Director of Gaurs Group, Manoj Gaur, said that the rating is a sign of approval for the greatest security in terms of financial commitments.

He said that the company has delivered around 35,000 property units in the last five years.

Director of Gaurs Group, Sarthak Gaur, said that the company would be launching projects in Noida, Delhi and Ghaziabad, focusing on luxury housing.

Chief Financial officer of Gaurs Group, Vineet Singhal, told the media that the company had reduced debt to about Rs 1,550 crore from Rs 2,400 crore in the last two to three years.

He added that the company has receivables of nearly Rs 2,000 crore from sold properties, while the remaining construction cost is just Rs 400 crore. The company will reduce its debt by Rs 500 crore in nine months, while the outstanding loans are from banks and non-banking financial companies (NBFCs).

The rating takes into account the better-than-expected financial performance of the company, positive revenue growth, increased operating profits and improved profit margins.

Singhal said that the company is to acquire new projects through purchasing land parcels and joint development agreements (JDAs) to expand its business.

It is developing two new township projects in Greater Noida and Yamuna Expressway, Uttar Pradesh.

Image Source